It is really easy to see that Amazon has been the leader when it comes to the fashion e-commerce market for many years now. Despite there being thousands of competitors all fighting over that same customer, Amazon is crushing them by taking in over 20 percent of all sales in this space. There is one competitor however, Kate Hudson’s Fabletics, that is taking matters into their own hands and beginning to close that gap to Amazon quickly. In just three years, Kate Hudson‘s Fabletics has sold over $250 million in women’s workout clothing.
The secret to this athleisure brand might surprise some, so we have to hear it from Hudson directly to really get an understanding of what is going on here. Reverse showrooming and membership perks are the foundation to the success of the company, says Hudson, and she knows these are techniques that not new to this industry. Take a drive to the Fabletics store in the mall and you will see the difference. Women are applying to get their memberships, taking a lifestyle quiz, window-shopping, and even trying on everything inside the store they can get their hands on. The sales associates actually encourage all these activities, without any pressure to buy the workout apparel.
The secret is when these same women hit the e-commerce store and discover all those pieces they were wearing in the store have been uploaded to their online profile. When these women have more time to shop for active-wear, they now can continue exactly where they stopped shopping at the mall. Take the concern of sizing out of the equation, and you are left with women excited about the prospect of just shopping the expansive online inventory for as many pieces of workout apparel they can get their hands on.
Membership at Fabletics still comes with more in the way of perks. Free shipping for those online orders, a personal shopping assistant, and discounted apparel, just a few of the reasons women are stuffing their online shopping carts with Hudson’s workout apparel. Your lifestyle quiz answers help the personal assistant to pick one item each month to add to your account for consideration. Amazon has none of these perks, only discounted shipping for Prime members at $79 bucks a year. Kate Hudson’s Fabletics is turning shoppers to loyal customers by treating them and spoiling them at every chance they can get throughout the buying process.
The online fashion sector has been dominated by corporations such as Amazon for the better part of the past decade. Kate Hudson is a businesswoman who has strived to ensure that she secures a niche in the industry. She co-owns Fabletics with Adam Goldenberg and Don Ressler. The company has been growing over the years, and it currently dominates the United States fashion industry. The main products that Fabletics provides are athleisure wear. It has devoted itself to making sure that women live a healthy and active lifestyle. The clothes that are sold by the firm are stylish and trendy.
Fabletics has been in the industry since 2013 and has grown at a rapid rate. The company has managed to eat into the market share of established businesses such as Amazon. It worth is currently approximated to be more than $250 million dollars. The company sells products to its clients by using a subscription service that is very convenient. It currently has more than six million members. Fabletics understands the specific needs of its customers by offering a short quiz that they are required to answer during registration. It also sells its customized products at discounted prices and this has made it attract many clients.
Another factor that has contributed to the success of the company is its accessibility. The retails its products by using both its online shops are as well as the brick-and-mortar stores. Fabletics has established the physical stores in different cities across the United States and plans to launch others in California, Florida, and Hawaii. It encourages its members to buy clothes from the brick-and-mortar stores by offering them a special discount. According to Kate Hudson, the clients’ preference to a product is presently not controlled by its price and quality. People tend to consider other factors such as the brand recognition, customer service, and after-sell support that is offered.
Fabletics has been inspired by leading brand such as Warby Parker and Apple. Its subscription model focuses on customers who are willing to spend on the top-notch products that it offers. The general manager of the company, Gregg Throgmartin, said that it is dedicated to revolutionizing the concept of high-value brands. The firm is determined to stay in touch with its subscribers by sending them personalized selections every month. It offers regular and VIP membership packages and the clients pay for the products by using online payment methods such as credit cards.
The internet has caused an entire set of new business issues that probably will become the new normal for marketing strategies involved with obtaining consumers who are purchasing high end products and especially fashion. In the fashion industry some negative forces are at play for which the industry is placing the blame squarely on the new online shopping sites that have exclusively low prices as compared to the price points in stores. The in store price point is effected by common business expenditures like those that arise from operating a physical store. Because many online store do not have this type of overhead, online prices are traditionally lower than brick and mortars can set their prices. Convenience is also a large factor contributing to the shift in consumer behavior but to a somewhat lesser extent.
Another lesser known issue is that high end companies obtain exclusivity with a higher price point, and this exclusivity along with providing a high quality product was the old method by which high end consumers choose brands in which they become loyal, repetitive customers. This strategy has been so effective that it was a formula for success versus an untested marketing strategy. However, one of the main reasons the strategy was effective was because physical stores were the easiest method to buy a product without regard to the method by which the consumer first encounters the particular goods they are interested in prior to the internet. The internet now combines the methods by which products are advertised and the ability to buy the product in the most effective way since companies began to utilize mail order with the same magazines in which they advertised.
However, the time required to receive the product is shorter than mail ordered products. Even more problematic for any business, online consumers consider receiving products purchased online more convenient, and in many cases, quicker than even visiting a physical store. The phenomenon of showrooming is beginning to become a real negative for fashion businesses also. Showrooming occurs because online shoppers cannot physically experience the product that they are interested in unless they come into a physical store. These stores lose business while having the same expensive overhead because these high end shoppers often return to the online outlets to benefit from the convenience and lower price of an online source for the product.
The new fashion brand Fabletics is taking an opportunity to exploit this consumer shift very successfully. This company’s 5,000 percent growth rate in only three years since its founding is a cautionary tale for those still utilizing old marketing techniques. This type of growth means that Fabletics and its open minded business model is the new giant. However, for new start ups and entrepreneurs for which the digital revolution is the only normal has a huge opportunity to utilize this new model for success that Fabletics and its founder Kate Hudson has provided. The proof that innovative marketing strategies like reverse-showrooming are effective is in the exponential growth that this innovative athletic lifestyle brand is incurring.
There are a lot of great companies today that are losing share to Amazon. Amazon is one of the largest companies in the world, and with retail growing increasingly popular online, this is something that the company stands to benefit from. Fabletics is a company that has decided to take Amazon on head on. There are few people who have the guts to do this. Kate Hudson started Fabletics from a dream, and she has done a great job of scaling up the company in the past couple of years. One of the great things about this company is that she has decided to start investing a lot of time and money into this area. With her resources and her network, a lot of people now know about the business who would have not known otherwise.
When the company was started, Fabletics was all about differentiation. In today’s market, competing in price is just a race to the bottom. You cannot deliver quality products and services while also trying to be the cheapest. This is a mistake that a lot of people make. Over the long term, a lot of people have decided to try this and failed. Kate Hudson had a different approach to this whole issue. Over time, she is a person who is trying to make an impact in the market. Fabletics is a company that can do that, and they are going to be able to take things to the next level in this area quickly.
When running a retail business, one of the most important factors to consider is margin. Over time, this is a key to keep your business going. If you are not making a lot of money on the products you sell, the margin you are operating at is not going to be sufficient to support growth. There are a lot of fixed costs that go into running a business. Few people understand how these fixed costs have to be paid for through the work of others. If you want to invest in a new product or service, make sure the margins on the program support it. Over time, this will make everything better for you and your business.
Overall, Amazon is a huge company that is having a lot of success right now. If you want to take things to the next level in this area, you have to follow the example of people like Kate Hudson at Fabletics. This is a company that provides a lot of products and services to help people get to a new level. With all of the changes in the market, you can still have success if you focus on adding value to customers over time. Fabletics is a company that is ready to start changing retail forever with their new types of products and services. Many people are excited about what the future holds in this area.
JustFab is fashion retailer that reaches women across the globe, including the United States, Canada, Spain, Netherlands, France, Denmark, England, Germany, and Sweden. After searching #JustFabStyle it won’t take you long to realize just how many places their clothing venture to. The company is based out of Los Angeles, CA where all of their items are designed and curated. JustFab encompasses a style for everyone. They have clothing for those who prefer simplicity to those that have a more eclectic look.
You’ll want to keep an eye out for summer pieces that have already began to roll out. In the winter JustFab is popular for a variety of cute boots but right now it is all about hot sandals, chunky heals, and wedges. Everyone loves the style of the Aishena block heel sandal with its strappy construction and light or dark color options. The shoe goes great with bohemian, classic, sexy, bold, flirty, or even girl next door. The Aishena block heel sandal is so great because of its versatility. The shoe could be dressed up or down. It could be worn in a professional atmosphere or in a casual one. A super hot look to pair the sandal with is the Ruffle Keyhole Romper, an elegant and breezy one-piece. JustFab also has a variety of summery dresses that the shoe would compliment perfectly.
So how do you get in on the forefront of the fashion trends on http://www.heels.com/shoe-brand/just-fab-shoes? You’ll want to become a member, which really has its perks. With a membership you’ll receive access to latest styles at unbelievable prices.
Overwhelmed by all the attractive options that JustFab has to offer? Shopping can be difficult when you have to pick and choose. Luckily JustFab makes things easier on a busy modern woman that wants shopping to be relaxing not stressful. The site provides style quizzes where you select the looks you like best. This helps narrow down which items may suit your personal style more. JustFab is all about personal style and helping you keep yours fresh! Source: http://www.justfab.com/summer-shop.htm